Will house prices rise in Cheshunt in 2022?
What is the outlook for the housing market next year?
The property market has soared in the past 12 months despite the adverse impact of the global pandemic has had on the UK economy, as people sought more living space and locked into cheap mortgage borrowing costs.
One of the major factors driving up prices over the past year was the stamp duty holiday, introduced in July 2020, which finally ended on 31 September after being phased out over the summer period.
The scrapping of stamp duty on properties worth less than £500,000 prompted record numbers of transactions, as buyers were able to save up to £15,000. Yet despite the ending of the tax break the housing market has remained relatively strong.
House prices grew by 7.1% in November Zoopla said, meaning the average house has now gained around £16,000 in value over the last 12 months. In most regions of the UK prices have grown by more than 2019 and 2020 combined.
But will the trends driving the residential property market continue into 2022?
The market in 2021 has been remarkably busy, considering we are in a global pandemic. But, the pandemic itself has been one of the drivers of buyer demand, with many households taking lockdowns as an opportunity to reflect on where they were living, and the space in which they were living.
There will be more economic headwinds next year, such as rising inflation and potential further interest rate rises but the ‘pandemic-led’ search for space has further to run in 2022. Office-based workers will still be recalibrating their working practices and their home life, and some may choose to make a move because they no longer have to live so close to their workplace.
This will continue to put upwards pressure on houses situated in wider commuter zones such as Cheshunt, so there may be more room for prices to grow in the more affordable areas, and forecast’s show that average prices could continue to rise.
When we look back at the pandemic in five to ten years we will recognise it marked a major turning point in the link between home and work and people’s attitudes to their home. The pandemic has lead to some seismic changes in how people want to work, and how they will work in the future. This trend has further to run, as more office-based workers decide how far they can live from the office if they do not have to be there every day into 2022.